Deutsche Bank | Since the publication of our latest transport leading indicators on 27 June, airlines (up 4%) and airport and infrastructure companies (up 2%) have slightly outperformed the market average (STOXX 600 +1%), despite higher oil prices (jet fuel rose 8% to $762/mt), continued uncertainty over tariffs and geopolitics, and some mediocre PMI data. Two of the French names we cover have been the most profitable within their subsectors, Air France-KLM (24%) and Groupe ADP (6%), while easyJet (down 7%) has been the laggard, after offering a less promising outlook than expected for the rest of the year to 25 September. Looking ahead to the rest of the second-quarter earnings season, we continue to favour quality: IAG and Ryanair (both BUY) in airlines, and Vinci, Ferrovial and AIA (all BUY) in airports and infrastructure.
Airlines and airports: rising despite uncertainty; IAG and Ferrovial, preferences in both sectors
